Since the end of 2021, a number of 10,000-ton Carbon Fiber expansion projects have been put into operation one after another. In the next few years, these production capacities will be gradually released, which will alleviate the contradiction between supply and demand in the industry, and the prices of mainstream carbon fiber varieties will be slightly lower than in early June. Manufacturers reported that there is too much inventory and there is pressure on shipping. Since the end of 2021, a number of 10,000-ton capacity expansion projects have been put into operation one after another, and the word "excess" has been mentioned more and more in the industry. Some industry insiders believe that after 3 years of continuous rise, the price of high modulus carbon fiber in China is higher than the international level, and downstream industries such as wind power are not very motivated to purchase. If the price of carbon fiber can be reduced to an appropriate level, it will benefit the entire industry chain.

    Carbon fiber is an inorganic polymer fiber obtained from organic fibers such as polyacrylonitrile, pitch, viscose, etc., which are carbonized to form a carbon backbone structure in a high temperature environment. Due to its excellent mechanical properties, carbon fiber Carbon Fiber Cloth is known as the "king of new materials" and "black gold" in the 21st century. Carbon fiber can be combined with resin, metal, ceramics, etc. to form advanced carbon fiber composite materials, which are widely used in rockets, large planes, ships, wind power, photovoltaics, hydrogen storage tanks, golf clubs, and badminton rackets. Data show that in 2021, China's total carbon fiber demand will be 62,379 tons, a year-on-year increase of 27.7%. Among them, the supply of domestic glass fibres was 29,250 tons, accounting for 46.9% of the total demand. Since the end of 2021, a number of companies have put into operation carbon fiber 10,000-ton capacity expansion projects.

    Jin Liang, secretary of the board of Zhongfu Shenying, introduced that the company's first 10,000-ton project expanded in Xining, Qinghai will be put into operation in September 2021; the second 14,000-ton project has started construction and is expected to be put into operation by the end of this year. Guangwei Composites is the earliest mass-produced carbon fiber enterprise in my country. The company's business covers polypropylene fiber mesh, Glass fiber strands, carbon fiber and various downstream composite materials. According to the data, the planned production capacity of Guangwei carbon fiber project in Inner Mongolia is 10,000 tons, and it will be put into production before the end of this year. 

    Baichuan Yingfu data shows that on June 28, domestic carbon fiber prices fell slightly. The market reference price of T300 grade 12K carbon fiber is 175 yuan/kg; the reference price of T300 grade 24/25K carbon fiber is 145 yuan to 150 yuan per kilogram; the reference price of T300 grade 48/50K carbon fiber is 140 yuan/kg. down. The reason for the price adjustment of Carbon Fiber 12K/24K/25K Fabric is: on the supply side, the new carbon fiber production capacity has been put into operation one after another, and the output of T300 large tow has increased significantly; on the demand side, on the one hand, affected by the epidemic, downstream users have received On the other hand, some orders have been transferred, and domestic demand has decreased. In contrast, China's carbon fiber industry in 2021 can be described as "hard to find".

    Over the past three years, the market demand represented by wind power has grown by leaps and bounds, and the effective supply is relatively insufficient, resulting in a sharp rise in carbon fiber prices. Many new construction and expansion projects have little technological progress and do not have international competitive advantages. However, there are also many people who oppose the view of "excess", among which is the researcher of securities companies. They believe that the demand for ultra high modulus carbon fiber has great potential, such as carbon-carbon composite materials in the wind power and photovoltaic industries, pressure vessels such as hydrogen storage tanks equipped with hydrogen vehicles, and rail transportation. However, the current price of carbon fiber is too high, which limits the application and promotion of carbon fiber. With the advancement of technology, localization of equipment, and the emergence of economies of scale, the cost of the entire industry chain is expected to drop, and downstream applications can be further opened.